Main Difference Between Domestic and International Business

Main Difference Between Domestic and international Business are as follows :

 

S.No International Business Domestic Business
1. It is extension of Domestic Business and Marketing Principles remain same. The Domestic Business Follow the marketing Principles
2. Difference is customs, cultural factors No such difference. In a large countries languages likeIndia, we have many languages.
3. Conduct and selling procedure changes Selling Procedures remain unaltered
4. Working environment and management practices change to suit local conditions. No such changes are necessary
5. Will have to face restrictions in trade practices, licenses and government rules. These have little or no impact on Domestic trade.
6. Long Distances and hence more transaction time. Short Distances, quick business is possible.
7. Currency, interest rates, taxation, inflation and economy have impact on trade. Currency, interest rates, taxation, inflation and economy have little or no impact on Domestic Trade.
8. MNC’s have perfected principles, procedures and practices at international level No such experience or exposure.
9. MNCs take advantage of location economies wherever cheaper resources available. No such advantage once plant is built it cannot be easily shifted.
10. Large companies enjoy benefits of experience curve It is possible to get this benefit through collaborators.
11. High Volume cost advantage. Cost Advantage by automation, new methods etc.
12. Global Standardization No such advantage
13. Global business seeks to create new values and global brand image. No such advantage
14. Can Shift production bases to different countries whenever there are problems in taxes or markets No such advantage and get competition from some spurious or SSI Unit who get patronage of Government.